Solana Might Outshine Bitcoin as DApp Trends Flash Bullish

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As a seasoned crypto investor with a knack for spotting promising opportunities, I can confidently say that Solana seems poised to give Bitcoin a run for its money. The SOL/BTC ratio and the bullish technical indicators are telling a compelling story about the potential of this underrated gem.

Solana, the leading digital asset within the Web3 ecosystem, seems poised to challenge Bitcoin‘s dominance. The bullish trend for SOL is suggested by the Solana-Bitcoin (SOL/BTC) ratio, while increased positive activity on the Solana blockchain adds credence to this pattern. In the past 24 hours, the coin has surged by over 3%, reaching $244.85. Over the past week, it has shown a robust growth of more than 16.99%. This puts SOL in closer contention with its main competitors.

Solana DEXs Achieve Record-Breaking Volume

Significantly, over the past seven days, the SOL/BTC ratio has increased by 1% and has broken free from a contracting price band. In terms of technical analysis, this price band is often referred to as a ‘triangular consolidation’.

This minor surge could affect market trends. Essentially, it suggests that the bulls are ready to take charge of the price movements. It seems plausible that the ongoing upward trend might persist following around eight months of a tug-of-war between the bulls and bears.

Furthermore, the Moving average convergence/divergence (MACD) histogram has dropped below zero, reinforcing the optimistic forecast. This valuable tool, utilized to identify trend changes, suggests a shift in momentum towards a bullish stance. Recent Solana trading volume statistics align with the positive perspective for SOL.

As a researcher, I’ve noticed an increasing interest among retail investors in trading memecoins on the Solana platform. This surge of attention has significantly boosted the activity on Solana-based decentralized exchanges (DEX) over the last seven days up to November 17. The data reveals that the cumulative trading volume has more than doubled compared to the previous week, reaching a staggering $41.6 billion.

Compared to the performance of Base Network, Binance Smart Chain, and the collective DEX activity on Ethereum, the volume handled by the Solana blockchain surpassed them all. In total, these DEXs processed transactions worth approximately $37.9 billion. Ethereum contributed about $14.3 billion to this figure, while Base Network and Binance Smart Chain accounted for roughly $11 billion each.

Catalysts behind Solana’s Surge

It’s worth noting that while Solana’s fees are generally lower than those on Ethereum, it has held its own when it comes to generating revenue. For instance, Raydium, a decentralized exchange built on the Solana network, has raked in over $72.83 million in fees just within the last week. This figure is approximately 8% more than Ethereum’s weekly fee earnings of $67 million, as reported by DeFiLlama.

In addition to Raydium, other protocols like Jito, a liquid staking platform, also stood out for their high fee generation. Specifically, Jito earned the third spot, generating about $7.89 million in daily performance fees.

Experts tracking market trends believe that if Solana maintains its current pace, it could potentially rival Bitcoin. During the same timeframe, Bitcoin yielded approximately $15 million in fee income. On this specific day, Pump.fun, a platform known for fees, made around $1.65 million, while Photon, a trading bot on Telegram, earned an impressive $2.36 million.

Multiple aspects might have contributed to the significant growth observed on the Solana Decentralized Exchange (DEX). Notably, attention has been drawn to Litecoin Mascot (LESTER), a fresh memecoin operating on the Solana blockchain. Within just 48 hours of its debut, LESTER amassed a market capitalization of $120 million. This strong performance follows its listing on various cryptocurrency exchanges, which has ignited interest and enthusiasm within the crypto sector.

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2024-11-19 17:24